Shouldn’t the utility reserves stay in the utilities?
The utility reserves are funds collected from Village utility customers over and above the costs to operate the utilities. These funds also are more than the amount needed for normal operating reserves. As such, the reserve funds will be spent to benefit Village properties, rather than remain in the utility reserves indefinitely. These funds could be spent to cash-finance upcoming capital projects, which would reduce the need to borrow funds. Another option would be to transfer the extra funds to the Village’s General Fund and use them to reduce the amount of taxes levied to pay for debt service or other expenses. This option is what has been proposed in the preliminary merger plan as a means of achieving consolidation of the Village and City of Pewaukee.
